Chichang Mingluo entered the soybean oil market with an 85% premium for the first time

Chichang has a history of over 30 years and is mainly engaged in the repackaging of refined palm oil. The main revenue comes from its own cooking oil brands, including Vitamas (Vitamas) and Sawit Emas (Sawit Emas), as well as the kerosene brand Cap Pingat Emas (Cap Pingat Emas); after this launch, it is preparing to enter the soybean oil market again.

Huang Xingye, managing director of Chichang, said at the press conference that the entry into soybean oil was mainly in response to customer needs.

” The customer made an independent report confirming the demand for soybean oil. It is the second most consumed cooking oil in Malaysia other than palm oil, so for Chichang, who already has extensive experience in the palm oil field, entering soybean oil is a strategic move. ”

He also explained that after completing the construction of the new plant, the operating space was increased by 90%, allowing the company to enter the soybean oil market.

Chichang raised a total of RM17.82 million for this PIO, which is mainly used to expand the plant, purchase equipment, expand the vehicle fleet, and use it as working capital.

He also pointed out that the company adopted a “fast in and fast out” strategy to deal with fluctuations in commodity prices.

“Indeed, the cost of refined palm oil is affected by palm oil futures. Faced with this situation, our company adopts a strategy of managing turnover, fast forward and fast exit, which allows us to quickly pass costs on to consumers through price adjustments while avoiding hoarding. ”

The company achieved that it only needed a 5-7 day turnover from raw materials to sale.

As to whether the strengthening of the ringgit will reduce some of the procurement costs of raw materials, he explained that the current strengthening of the ringgit is still in its early stages, and there is no significant change in costs at present.

” There was no change in cost, just the same as before. ”

Also attending the listing ceremony were independent directors Guo Yiling, Guo Xiuyun, Tong Guibin, executive directors Huang Xinglong, Shari, non-executive chairman Adulasa, and Xie Wenjin, head of corporate finance at Dada Securities.